A policy to keep an 8-10 percent fund balance was suspended for the fiscal year that ended June 30 as well as the current fiscal year for Farmington Public Schools, due to Board of Education action Tuesday.

Board Vice President George Gurrola and trustee Murray Kahn didn't attend the meeting.

Moments before approving its $143.5 million budget for 2015-16 — on the June 30 deadline — the FPS Board of Education gave a unanimous thumbs-up to shelve its rule to hold 8-10 percent of the budget in what's typically considered a "rainy day" fund. Tapping that fund for some $1.5 million for the new budget has left it at just 3.2 percent, and the district has its sights set on reaching a target of 5 percent later this year.

FPS officials say adjustments, to be determined, will result from severance packages accepted by teachers, administrators and other personnel.

"I anticipate we might be adding a small amount to the fund balance at the end of 2015-16," said Mary Reynolds, FPS executive director of business services. The balance could inch above 5 percent, Reynolds said, which means the district would avoid "early warning legislation" pending in the state legislature — which would impose expanded financial reporting requirements on struggling districts.

The intent, she said, is to "start building the budget" later this month.

A 5 percent fund balance, Reynolds explained, would cover just under 10 days of school operations.

"Ten days of school is not a cushion," Board President Sheilah Clay.

Budget challenges

Pink-slipping 231 staff — including 105 teachers in grades K-12 — is among the measures the FPS has used to tackle its budget challenges. Some, but certainly not all, of those named to layoff lists will be called back in upcoming weeks.

Clay said Reynolds and her staff did the best they could "knowing (they) don't have all the information. We expect this (budget) to change, but are mandated that this is approved by June 30, which is today."

Superintendent George Heitsch called the 231 layoffs "unfortunate" and a "very, very large number to consider," but, like Clay, noted that some will be recalled. Still, he said, "it's disruptive and a lot of work to rebuild the system."

The district's budget is typically amended twice during the school year.

Among those speaking out at the June 30 Board of Education meeting was Deb Lotan, Michigan Education Association's executive director of bargaining contracts, who blames the state's public school funding levels and mandates for the district's money woes.

"I say if we want something different, we work together, we let Lansing know," Lotan said. "Lansing's gonna have to listen to us eventually."

However, others, like Farmington Hills resident Sue Burstein-Kahn, believe FPS has a history of mismanagement — the results of which Heitsch is now dealing with, and working to overcome. Burstein-Kahn, who keeps a close eye on the district and is a frequent commenter at Board of Ed meetings, questions why the district kept staffing levels higher than needed over the past few years, as stated in the 2015-16 budget.

At the June 23 Board of Education meeting, she also noted that by extending teachers' contracts by two years to 2016, the district lost an opportunity to "right-size salaries" and other large expenses. That, she said, could have drastically reduced expenses.

On Tuesday, Board of Ed treasurer Howard Wallach said the several rounds of staff layoffs announced over the past several weeks "didn't have to happen." A year or so ago, he said, he met with union officials and "talked about across-the-board cuts" — but was unsuccessful.

"If such an effort had been made...the layoffs likely wouldn't be so high," Wallach said. "Actually, the number of people (pink-slipped) wouldn't be so great."

More changes

FPS officials say district families can expect larger class sizes in September, and possibly the closing of some buildings. Further information will be presented at the July 23 Board of Education meeting, when the Building and Site Utilization Committee reports.

"This is a very important report," Clay said. "I hope people will come, or pay attention."

The meeting will begin at 7:30 p.m. in the Lewis Schulman Administrative Center, 32500 Shiawassee in Farmington.